Reforming public debt governance in Turkey to reach debt sustainability

Eğrican, Aslı Togan; Caner, Selçuk; Togan, Sübidey

doi:10.1016/j.jpolmod.2022.07.004

Cited by 9 publications

(2 citation statements)

References 27 publications

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“…Several previous studies related to the analysis of debt sustainability in developing countries [11][12][13][14][15][16][17][18][19][20][21][22][23]. In analyzing debt sustainability in Kazakhstan and the Russian Federation, Mukhtarkhan [11] applies the threshold value of public debt in both countries.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The result shows that the central government budget on unsustainable conditions. Previous research investigated debt sustainability in Turkey related to solvency analysis in 2000-2020 [19]. The results argue that it is complex and difficult to achieve public debt sustainability, which entails meeting solvency and liquidity constraints in nations where real interest rates are higher than the real growth rate.…”

Section: Literature Reviewmentioning

confidence: 99%

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Public Debt Sustainability in Indonesia after Financial Crisis and During COVID-19 Pandemic

Rahman¹,

Rahmayani²,

Hapsoro³

2023

IJSDP

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The Developing countries are particularly vulnerable to shocks, such as the global financial crisis and the COVID-19 pandemic. The economic crisis increased external public debt to stabilize the economy and improve people's welfare. High external debt puts the debt in an unsustainable condition. This study aims to measure the debt sustainability of external public debt in Indonesia from 2008-2020. We used the Threshold Value of The Debt Sustainability Framework for Low-Income Countries (LIC-DSF) and the Solvency Rate of External Debt (SRED) as a better combination for measuring debt sustainability in Indonesia. The results showed external public debt was at a low-risk threshold after the global financial crisis. However, the impact of COVID-19 has caused the ratio of external public debt interest payment to tax revenue to be within a high-risk threshold value. The SRED value shows a minus number from 2012-2020 caused by the worsening current account balance and net capital account values. The analysis of debt sustainability may be able to encourage a prudent and sustainable the Indonesian budget management policy.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Public Debt Sustainability in Indonesia after Financial Crisis and During COVID-19 Pandemic

Rahman¹,

Rahmayani²,

Hapsoro³

2023

IJSDP

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Empirical examination of public debt sustainability in African economies: A panel data analysis

Shah,

Rafique,

Afridi

2023

Journal of Public Affairs

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This study intends to investigate public debt sustainability across 29 Sub‐Sahara African (SSA) economies, employing various econometric specifications, for the sampled years 1996–2020. The study employs Bohn's (Are stationarity and cointegration restrictions really necessary for the intertemporal budget constraint? Journal of monetary Economics, 54(7), pp.1837–1847.) framework of sustainability as the baseline model to assess public debt sustainability across the sampled Sub‐Sahara African economies. As additional tests of public debt sustainability in order to support the baseline findings, the study also employs panel unit root and timeseries unit tests. The baseline findings from the OLS, panel quantile and instrumental panel quantile regressions show that public debt is sustainable across the panel of SSA economies. The positive and statistically significant response of primary balance under the Bohn's framework of sustainability manifest that the intertemporal budget constraint is not violated in the sampled economies. The consistency in the estimates under the OLS, panel quantile and instrumental panel quantile regressions also show that the estimates are robust throughout the estimation process. Also, utilizing the panel unit root test for public debt sustainability, the findings show that public debt is stationary over the sampled years which implies that intertemporal budget constraint holds and that public debt is sustainable across the sampled SSA economies. However, the timeseries analysis indicate that although majority of the SSA economies have sustainable public debt ratios, four countries namely Uganda, Sudan, Togo and Cote d'Ivoire have unsustainable public debt ratios. The study has important policy implications in terms of prudent public debt management and fiscal management for the sampled SSA economies.

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